Assignment Of Proceeds

You loaned money to a friend, and now he's paying you back in installments. Meanwhile, you recently bought a different friend's sous vide machine (because you really want to get into high-end cooking, and he bought it two years ago, used it once and now it just sits in his basement).
Instead of getting cash from your money-borrowing friend and giving it to your fancy-cooking friend, you decide to skip the middle man. You tell Friend A to just give the money he owes you to Friend B.
That's essentially assignment of proceeds.
In general terms, this type of transaction happens when one party transfers the funds generated from a letter of credit to a third party. Basically, a company is owned money, but strikes a side deal for someone else to become the beneficiary of any funds generated from that debt.